The Tasmanian Government’s push to privatise state-owned businesses has hit a roadblock, with the House of Assembly voting 16 to 14 against any future asset sales.
Wednesday’s vote ramps up pressure on the government, with both houses of Parliament now formally pushing back on plans to offload public businesses.
Labor leader Dean Winter, who brought the motion forward, blasted the government’s strategy, calling it “a fire sale” of assets that belong to all Tasmanians.
“This is a Tasmanian Liberal government that inherited no net debt, $200 million worth of net cash and investments in the bank when they inherited in 2014. Since that time, they have completely wrecked our budget,” he said.
Premier Jeremy Rockliff raised the idea of selling off government businesses earlier this year, pointing to rising debt and cost blowouts on the Spirit of Tasmania ferry project as reasons to rethink public ownership.
Treasurer Guy Barnett tried to water down the motion, urging the House to hold off until a parliamentary inquiry into the issue reports back next February.
“Why would you then come in and try and trump all the work of that inquiry, try and undermine the work of the inquiry?” Barnett said during debate.
“What’s the point of the inquiry if state Labor wants to progress with their motion and to throw it out the window without having the inquiry?”
“It’s really a weird approach. I think it’s very much the cart before the horse.”
Barnett’s amendment was knocked back along the same lines as the final vote, with Labor and the Greens uniting in opposition.
Greens deputy leader Vica Bayley expressed strong opposition to privatisation, saying it would lead to higher prices and poorer services.
“It’s not about governance reform. It’s about offloading … those government businesses so they can prop up budget black holes and a massive escalating budget deficit and debt,” he said.
On the chopping block could be TasNetworks, Metro Tasmania and TT-Line, with only Hydro Tasmania safe from potential sell-off.
The government has commissioned economist Saul Eslake to conduct a “divestment assessment” of state-owned businesses, with Barnett insisting any sale would only proceed if it’s “in the public interest”.
The House of Assembly vote mirrors a similar motion passed in the Legislative Council, where the government also lacks the numbers, making it nearly impossible to push ahead with privatisation without major compromise.
The state government is continuing with its review of government businesses, which it has described as “the biggest shake-up in more than 30 years”.
